NYSEAM:PLX - Post by User
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InvestLargeCon Apr 11, 2017 9:49am
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Post# 26105770
Smart Cash Injection of $5mln Without Dilution
Smart Cash Injection of $5mln Without DilutionI believe PLX did the best deal for its shareholders. Thanks to this farm-out with TSV, it will get a $5 million cash injection by selling 20% WI on some of its properties and eventually will receive the cash to grow its production and cash flow at the end of the day. No need for dilution. No need for debt. Excellent.
" The initial capital expenditures are expected to result in appreciation in Point Loma production and associated net revenues. In establishing this JV Point Loma has attracted a strategic partner that will allow Point Loma to accelerate currently identified opportunities and additional capital options to pursue opportunities in the core focus area of west central Alberta. Point Loma has been able to acquire certain assets for accretive terms in the region and this transaction will inject capital to activate additional acquired production previously suspended and to expand the Corporation's drilling program.
Current production of approximately 900 boe/d is anticipated to ultimately increase with the deployment of the proceeds through certain identified acquisitions, development drilling and new pool drilling opportunities. "